BILL NUMBER: S1459

SPONSOR: SANDERS
 
TITLE OF BILL:

An act to amend the election law, in relation to corporate political
contributions

 
PURPOSE:

To ensure political expenditures and contributions of corporations
reflect the desires of shareholders, and to provide transparency and
accountability.

 
SUMMARY OF PROVISIONS:

Section 1 amends subdivision 2 of section 14-116 of the election law by
adding four new paragraphs (a), (b), (c) and (d) providing:

(a) Corporations shall not spend any resources on political campaigns
and candidates without showing a prior majority vote of shareholders
              

authorizing political spending by management and expressing the partisan
political preferences of the shareholders.

(b) All corporate political expenditures or contributions must be posted
on the company website within 48 hours.

(c) If a majority of a company's shares are owned by large institutional
investors that cannot take political positions, the corporation shall
not make political expenditures or contributions.

(d) Shareholders have the right to request a pro rata rebate for the
portion of their investments spent by the corporation on any political
expenditures and contributions they disagree with.

Section 2 provides this act shall take effect immediately.

 
EXISTING LAW:

Corporations can spend their resources to influence election outcomes.

 
JUSTIFICATION:

Unchecked, the principle of corporate personhood poses an existential
threat to our democracy. Corporations can effectively squeeze ordinary
people out of the political process. It is therefore imperative to
ensure, at the minimum, that corporate expenditures and contributions
reflect the desires of shareholders, i.e., the actual people who
comprise a corporation. Corporations should be subjected to at least the
same level of regulation as labor unions.

 
LEGISLATIVE HISTORY:

03/23/16 Referred to Elections

 
FISCAL IMPLICATIONS:

None

 
LOCAL FISCAL IMPLICATIONS:

None

 
EFFECTIVE DATE:
This act shall take effect immediately.